Current Rating and Its Significance
MarketsMOJO currently assigns Pasupati Acrylon Ltd a 'Hold' rating, indicating a neutral stance on the stock. This suggests that while the company demonstrates certain strengths, there are also factors that warrant caution. Investors are advised to maintain their existing positions rather than aggressively buying or selling the stock at this stage. The rating was adjusted on 29 January 2026, reflecting a slight change in the company's overall assessment, but the detailed evaluation below is based on the latest data available as of 03 February 2026.
Quality Assessment
As of 03 February 2026, Pasupati Acrylon Ltd maintains a good quality grade. The company’s operational fundamentals remain robust, highlighted by a low debt-to-equity ratio averaging zero, which underscores a conservative capital structure and limited financial risk. This financial prudence is a positive indicator for long-term stability. Furthermore, the company has demonstrated healthy long-term growth, with operating profit expanding at an impressive annual rate of 67.58%. Such growth reflects effective management and operational efficiency within the petrochemicals sector.
Valuation Metrics
The valuation grade for Pasupati Acrylon Ltd is currently attractive. The stock trades at a price-to-book value of 1, signalling that it is fairly valued relative to its net assets. This valuation is supported by a return on equity (ROE) of 10.3%, which is a respectable figure indicating efficient use of shareholder capital. Despite the stock generating a modest return of -1.49% over the past year, the company’s profits have risen by 10.6% during the same period, suggesting that the market price may not fully reflect the underlying earnings growth. The PEG ratio stands at 1, indicating that the stock’s price is in line with its earnings growth potential, which is a favourable sign for value-conscious investors.
Financial Trend and Performance
The financial trend for Pasupati Acrylon Ltd is very positive as of 03 February 2026. The company reported exceptional net profit growth of 825.71%, driven by strong quarterly results. Notably, the return on capital employed (ROCE) for the half-year period reached a high of 12.49%, while quarterly net sales hit a peak of ₹280.25 crores and PBDIT (profit before depreciation, interest, and taxes) reached ₹27.15 crores. These figures highlight the company’s ability to generate substantial earnings and cash flow, reinforcing its financial health. However, despite these strong fundamentals, the stock’s price performance has been mixed, with a 1-month decline of 9.52% and a 3-month drop of 17.30%, reflecting some near-term market pressures.
Technical Analysis
From a technical perspective, the stock is currently graded as mildly bearish. While the stock gained 3.86% in the last trading day and 3.56% over the past week, it has underperformed over longer periods, including a 13.85% decline year-to-date and a 3.71% drop over six months. This suggests that short-term momentum is positive but longer-term trends remain subdued. The stock has also underperformed the BSE500 index over the last one year, three years, and three months, indicating relative weakness compared to the broader market. Investors should be mindful of these technical signals when considering entry or exit points.
Shareholding and Market Capitalisation
Pasupati Acrylon Ltd is classified as a microcap company within the petrochemicals sector. The majority of shares are held by promoters, which often implies a stable ownership structure and potential alignment of interests with minority shareholders. However, microcap stocks can be subject to higher volatility and liquidity constraints, factors that investors should consider alongside the company’s fundamentals.
Summary for Investors
In summary, Pasupati Acrylon Ltd’s 'Hold' rating reflects a balanced view of its current standing. The company exhibits strong financial trends and attractive valuation metrics, supported by good quality fundamentals. Nevertheless, the mildly bearish technical outlook and recent underperformance relative to market benchmarks temper enthusiasm. For investors, this rating suggests maintaining existing positions while monitoring the stock for clearer signs of sustained momentum or fundamental shifts. The company’s solid profit growth and conservative capital structure provide a foundation for potential future gains, but caution is warranted given the recent price volatility.
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Contextualising Recent Returns
Examining the stock’s recent returns as of 03 February 2026, Pasupati Acrylon Ltd has delivered a mixed performance. While it recorded a positive 3.91% return over the past year, this is modest and below the broader market indices. The stock’s 1-month and 3-month returns have been negative at -9.52% and -17.30% respectively, indicating short-term headwinds. Year-to-date, the stock has declined by 13.85%, reflecting some volatility in the current market environment. These figures highlight the importance of considering both fundamental strength and market sentiment when evaluating the stock’s prospects.
Industry and Sector Considerations
Operating within the petrochemicals sector, Pasupati Acrylon Ltd benefits from the sector’s cyclical nature and demand dynamics. The company’s strong operating profit growth and recent record sales suggest it is well positioned to capitalise on sectoral opportunities. However, petrochemicals can be sensitive to raw material price fluctuations and global economic conditions, factors that may influence future performance. Investors should weigh these sector-specific risks alongside the company’s individual strengths.
Outlook and Investor Takeaways
Given the current 'Hold' rating, investors should approach Pasupati Acrylon Ltd with a balanced perspective. The company’s attractive valuation and very positive financial trend provide a solid foundation, but the mildly bearish technical signals and recent price underperformance suggest caution. Monitoring upcoming quarterly results and sector developments will be crucial to reassessing the stock’s potential. For those already invested, maintaining positions while observing market movements is prudent. Prospective investors may consider waiting for clearer technical confirmation or further fundamental improvements before initiating new positions.
Conclusion
Pasupati Acrylon Ltd’s current 'Hold' rating by MarketsMOJO, updated on 29 January 2026, reflects a nuanced view of the company’s prospects as of 03 February 2026. The stock combines strong financial growth and attractive valuation with some technical and market challenges. This balanced assessment provides investors with a comprehensive understanding of the stock’s current standing, enabling informed decision-making in the context of their broader portfolio strategies.
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